Major Chipmakers Expand Memory Production Amid AI Demand; Supply Glut Risk Emerges for 2028-2029

According to Financial Times on July 20, Samsung Electronics, SK Hynix, and Micron are undertaking significant capacity expansions in memory chip production to capitalize on artificial intelligence demand. However, industry observers warn that if investment momentum cools, these expansions could trigger a supply glut in 2028-2029, echoing previous semiconductor cycles.

The aggressive investment by major memory manufacturers assumes sustained AI-driven demand. A slowdown in AI spending or delayed adoption could leave the industry with excess capacity.